ExxonMobil plans to transfer numerous traders from Brussels to London, marking a notable post-Brexit boost for the City.
The American energy giant is restructuring its burgeoning trading division by consolidating its traders from the Brussels office and its UK office in Leatherhead, Surrey, into a centralized location in the City of London.
Those unwilling to relocate have been informed they may have to exit the company.
An Exxon representative stated, “To enhance our trading operations, London offers closer access to key trading markets and pools of trading expertise, aiding our development as a trading entity.”
This shift is interpreted as a renewed vote of confidence in the City, which has navigated through years of uncertainty and disruption post-Brexit, affecting finance firms.
A recent study by Cambridge Econometrics, commissioned by the Mayor of London’s office, revealed that London currently has 290,000 fewer jobs than it would have without Brexit, resulting in an economy £30bn smaller than anticipated.
Another European Capital Markets Institute report noted that while Brexit significantly impacted UK stock markets and pensions, London’s status as a global financial hub remained relatively stable.
The report mentioned, “There wasn’t a major exodus of banking jobs from London, no EU financial centre emerged as a clear winner, nor did London experience the significant boost some Brexit supporters anticipated.”
ExxonMobil highlighted London’s continued allure as a prime global trading and talent acquisition location.
Their new open-plan trading floor in the City will accommodate 170 personnel, providing trading services for the entire corporation across various markets and regions.
The spokesperson added, “Our trading division actively purchases and sells in the open market to secure crude supplies for our refineries. It also deals in other products we produce, like gases, liquefied natural gas, and chemicals, as well as emerging areas aligned with energy transition, including environmental certificates and CO2 trading.”
ExxonMobil has a workforce of approximately 2,000 in the UK and operates the large Fawley refinery near Southampton. This refinery is a major supplier of petrol and diesel in the southern region of England, including London, and also provides aviation fuel to Heathrow and Gatwick airports through its pipelines.
Additionally, the company runs a facility in Mossmorran, Fife, where North Sea gas is processed into ethylene. Ethylene is often referred to as the “world’s most essential chemical” due to its foundational role in the production of various plastics such as polyethene, polyester, PVC, and styrene foams.
The company’s trading arm expanded significantly in 2018, leveraging ExxonMobil’s extensive global network for market insights. This strategy culminated in record trading profits in 2022, with the company reporting gains exceeding $1 billion in the final quarter of 2023.
